The Stakeholder Engagement Manual Volume 2 - AccountAbility

Introduction
WHY ENGAGE?
Th e past few decades have seen a shift in the role of the corporation in society.
Some of the key trends causing this are the globalisation of markets, the emergence
of global social and environmental challenges like HIV / Aids and climate change,
as well as the decreased ability of individual national governments to address such
issues by themselves. Furthermore, there is the growing infl uence of civil society
organisations. One outcome of these trends is an increase in the complexity
and dynamics of the operating environment for all kinds of organisations,
including businesses. In order to understand and address the issues emerging out
of this dynamic complexity, individual actors, whether businesses, civil society
organisations or governments, are becoming increasingly dependent on sharing
knowledge and working together.
In this changing environment, businesses now play a more important role than ever
before. Th eir activities have economic, environmental and social impacts on society
from a local through to a global scale. In many countries, businesses play an active
part in the shaping of public policy and regulatory developments. Furthermore, a
wave of privatisation in many parts of the world, and a growing number of publicprivate
partnerships has increased the role of the private sector in delivering what
has traditionally been seen as public services. Th e increased involvement of private
corporations in international development activities, often in co-operation with
inter- and supranational bodies, is another signifi cant development in this context.
In response to the enhanced role of business in society, more and more members
or representatives of diff erent social groups who are impacted, claim their right to
be informed of, consulted on and involved in corporate decision-making. In many
developed countries, these claims have been enshrined in legislation, which requires
consultation before taking potential high-impact decisions, for example on the
location of an industrial production plant.
THREE GENERATIONS OF CORPORATE
STAKEHOLDER ENGAGEMENT 1
3rd Generation
Integrated strategic
engagement for sustainable
competetiveness
2nd Generation
Systematic engagement for risk
management and increased understanding
of stakeholders
1st Generation
Pressure driven engagement for pain alleviation
with localised benefi ts
1 See also the complementary Figure 2.6 in Volume 1 “The Guide to Practitioners’ Perspectives on Stakeholder Engagement”, p.27.